Friday, 27th August 2004 (3138 views)

North American gold miners are spending more money on exploration at present than at any time in the last seven years.

Canada's National Bank Financial says that producers' exploration budgets are currently a fifth bigger than in the second quarter in comparison with last year - and 75 per cent bigger than two years ago.

Geoff Handley, vice-president of strategic development at Placer Dome, told the Toronto Star: “As gold prices go higher, cash flows increase and miners can afford to spend more."

"While metal prices are down, people tend to focus on what's necessary to minimize production costs. When prices go up they tend to focus on what will grow production," he added.

The bank says that the 11 largest miners in North America have ramped up exploration budgets to $28 per ounce for the April-June quarter- the highest since 1996.

 

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